Annual ITsAP SME Conference 2014
For Video Clippings of the event please visit: http://www.hybiz.tv/Event-Videos/Hyderabad/p:3
India is 3rd fastest growing APP Market, more than 300 million Apps downloaded and the APP market here is INR 300cr plus: said NASSCOM National President R.Chandrashekar while speaking on “Industry Perspective and Opportunities for SMEs”
Bangalore is one of the top 20 start ups eco systems globally
AP has approximately over 10% of start-ups in the country: V. Rajanna, ITsAP, President
Hyderabad, March 19… ITsAP organized its Annual SME Conference 2014 at HICC on 19th March 2014. The full day conference was participated by well over 300 hundred participants. Mr. Sanjay Jaju, Secretary, ITE&C, Government of Andhra Pradesh formally inaugurated the meet.
Former Telecom Secretary and current NASSCOM National President R. Chandrashekhar, who took over charge recently as President of NASSCOM, the body that represents the $ 108 billion Indian IT_BPM Industry delivered a key note address on Industry Perspective and Opportunities for SMEs. He was the first to establish the department of information technology in the country in the state of Andhra Pradesh and was secretary of the department from June 1997 to December 1999.
Mr. R. Chandrashekhar gave Indian IT, BPM Industry Overview for the year 2014 and outlook of year 2015. Industry is evolving constantly. Businesses are increasingly influencing technology. We are witnessing lively start up ecosystem infusing new energy fuelling innovation, he said.
Giving an overview of IT-BPM industry he said it is the largest private sector employer with 3.1million. It is the largest private sector of women employer giving employment to 1 million. It is the highest attractor of $ 2.4 billion PE and VC investment, Chandrashekhar informed.
The world wide GDP growth are set to increase from 3.1% in 2013 to 3.7% in the year 2014. Unemployment is set to decline. World Inflation is set to reduce. Commodity prices are coming down. The Global Sourcing is growing by 2X of IT BPM spend. The industry is expected to aggregate US $ 118 billion in Financial Year 2014. This reinforces India’s position as the one country form where you can do everything, he said.
It was the big hiring time. The Industry employee base crosses 3 million addition of 1.66 lakh he said and added that India is epicenter of the technology world of 50% of global Technology MNCs, 80% of Indian Tech companies and 20-30% of global Tech R&D workforce based out of India.
Speaking about Indian Start Up ecosystem he said there are 1000 to 1200 who are big and doing remarkably well. We have 20,000 small size players. Bangalore is one of the top 20 start ups ecosystem globally. The years gone by have registered 3 times growth in new firms set up post year 2005, said R.Chandrashekar. Start ups are increasingly focusing on solutions around SMAC.
Stating further he said there is an increase in Million Dollar clients by 50% in the last five years. 100% of clients have gained productivity improvements from India. Over 70 per cent have derived global emerging marketing solutions from India, he said. India is a dynamic market place with 920 million telecom subscribers, 40 million smartphones and 213 million internet users. It is the 3rd fastest growing APP market in the world. It has more than 300 million plus apps downloaded and market of INR 300cr plus APPs.
R.Chandrashekar also projected growth in global IT spending. He said it is projected to grow faster in 2014. IT will grow by 3.9% and BPM by 5.9%. All said and done is good. But there are some challenges too, he said and added that Politicial Unstability was the big problem. Stability of Macro Economic Variables, Delay in Decision making slowed down the government projects. The skills are in huge demand and there is big problem on that front. Immigration bill, dollar fluctuations too had its share of worries for the industry, he said. The state of Andhra Pradesh additionally had more uncertainty due to bifurcation agitation. Now that it is resolved, we can expect things to change for better he said. He also listed out few priority areas of NASSCOM such as Technology Transforming, Strategic Partnerships, Collaborations, Digital Hub and expansion to new geographies for business growth.
Earlier addressing the gathering immediately after the inauguration, Mr. Sanjay Jaju, Secretary, ITE&C Government of Andhra Pradesh said next decade belongs to Start Ups and Idea Entrepreneurs. The brand Hyderabad has now more or less settled. So we make expect good industry prospects.
Adding further he stated that Whats App, Google, Apple Computers, Facebook all were started small in car guarages or in small places. Facebook was started in University Environment. Today they are very big enterprises. Flipcart in India which has registered a turnover of Rs 6000crore is started small by two youth. So what you need to succeed is a brilliant idea and plan. Funding comes searching you. IT changed rules of game. There is no limit for expansion, no limit for enterprises, no limit to push ideas. Ideas are good enough. We need ideas that differentiate. Need ideas that are saleable. So, you SMEs have potential to grow. Indian googles to prosper. Don’t look back he said.
Today IT landscape is dominated by big players. 80 per cent of them are big. Remaining are small. We need a conducive atmosphere for co existence of big and small he said. You need to have symbiotic relationships, he said. You need partnership with industry, academia and government system for mutual growth, he told them. SMEs must use social media as you are not big enough to have brand ambassadors. Use social media to your advantage he suggested them. Start looking market within you. Tap your own potentional, he told SMEs.
Mr. V. Rajanna, President of ITsAP while welcoming the gathering said ITsAP has been at the forefront in terms of nurturing the growth of SMEs and start-ups. You may recall that AP was the first state to come up with a special preferential policy for SMEs, Rajanna said.
If you look at the Indian IT industry today, there are more than 15000 small sized players and this number is growing year on year. These companies today are contributing to 9-10% of the output of the Indian IT Industry and are infusing the industry with energy and innovation-whether it is the areas of Digital, Data Sciences, Cloud, Al, eCommerce, Education, Agri, BFSI or Energy said Rajanna.
AP has approximately over 10% of start-ups in the country and this number is growing rapidly by the day. In fact, there are more than 230 companies operating in Tier II cities like Vizag, Warangal, Vijayawada, Kakinada and Tirupathi and most of them are start ups and SMEs, he said.
Mr. Ravi Rao, MD of Valuemomentum and Coordinator of ITsAP SME forum while giving details of the event said 60 per cent of the total participants of the ITsAP’s Annual SME meet are outsiders and not the members of ITsAP, which is very good, he said. This meet will benefit IT sector in this region he said. He urged participants to make use of the opportunity. The objective of the meet he said,to provide platform, to give them voice, play a role of policy advocacy etc and others he said.
Srinath Reddy, MD of RAMINFO ; L. Suresh, Founder & MD of Identis Tech Solutions; V. Sudhakar, Founder & CEO of BigBasket.com, Pani Baruri, Senior Director of Cognizant; Indranil Sarker, Head of Emerging Technology, TCS Co-Innovation Network; Flt Bipin Chandra Dutt Pendyala, Director of iKeva and Jay Pullur, CEO & Founder, and others have participated and spoke on the occasion.
SMEs are backbone to the economy. If the Indian IT/ITES industry needs to enter the next phase of growth, Small and medium enterprise (SME) sector has the potential to be one of the key drivers. So the meet discussed about technology trends, opportunities, operational challenges, leveraging technologies etc and many issued concerning the SMEs sector.
Some of the key areas the one day meet covered include Technology Overview and Evolving Opportunities/Business Models; Opportunities in e-Commerce and BFSI. It will also have an open house with successful entrepreneurs. The participants will also be familiarized with Policy framework and Opportunities to engage with Government and learn to get Operational Excellence (Currency Hedging, Virtualisation, and Managed Services)